GEICO raises hurricane estimate
GEICO Corp. raised its estimates yesterday of gross losses from Hurricane Andrew to $135 million or more, and said third-quarter earnings will fall as a result. The Chevy Chase-based insurer said its new estimate on losses from the hurricane that devastated south Florida and Louisiana was based on a review of all auto and property losses reported through Oct. 8. On Sept. 23, the company put its losses at about $80 million.
GEICO, which said $85 million has already been paid to policyholders, said the number of claims reported was not up substantially, but the estimated cost per claim is increasing as the rebuilding process continues
Campbell eyes Australian firm
Campbell Soup Co. launched an $860 million bid yesterday for Australian food company Arnotts Ltd., a move industry analysts attributed to the U.S. giant's battle against European DTC rivals for the Asian market. Arnotts owns some of the best-known food brands in Australia and commands 65 percent of the country's $790 million cookie market.
Bid for Continental withdrawn
A group involving several former Continental Airlines employees withdrew its $425 million bid for the carrier yesterday, complaining its offer was never taken seriously. The bid from Benefit Concepts New York Inc. was one of five offers submitted for the Houston carrier, which is in the midst of bankruptcy reorganization.
The remaining four offers range between $385 million and $425 million. Continental has said it would decide by Nov. 9 which investor it prefers.
Stoner to buy 2 radio stations
Stoner Broadcasting System Inc. of Annapolis has agreed to buy WTUE-FM and WONE-AM from Summit Communications Group of Akron, Ohio. Terms of the Oct. 8 agreement weren't disclosed. The agreement is subject to approval by the Federal Communications Commission.
Stoner already owns WWSN-FM in Dayton, Ohio. With the purchase, Stoner will own 14 stations in eight cities, including Buffalo, N.Y.; Louisville, Ky.; and Knoxville, Tenn. The sale would leave Summit -- which has sold stations in Akron; Lincoln, Neb.; and Springfield, Mo. -- with properties in New York, Atlanta, Dallas, Baltimore and Denver.
Intel's income up 19% in quarter
Intel Corp. said third-quarter income rose 19 percent to $240.8 million, or $1.12 a share, from $201.7 million, or 96 cents a share, a year earlier. Revenue increased 20 percent to $1.43 billion from $1.19 billion, said the maker of computer components. Intel is based in Santa Clara, Calif.